In 2025, a striking trend is reshaping multifamily real-estate investing: buyers are increasingly favoring older properties over newly-constructed inventory. This shift is driven by lower purchase costs, attractive financing, and a changing capital environment.
Why Older Multifamily Assets Lead the Pack
Several key factors underpin this movement:
- Lower entry cost: Many vintage multifamily buildings (often built before the 1970s) trade at lower equity thresholds compared to newer inventory. This makes them accessible to more investors.
- Superior financing availability: Agency lenders and other capital providers are more willing to underwrite stabilized older assets, especially when newer construction faces tighter terms, giving investors a financing edge.
- Size and scale advantage: Older multifamily buildings tend to be smaller in size (for example, ~40,000 SF) compared to many recent constructions (~100,000 SF), which can offer more nimble operations and concentrated value-add opportunities.
What This Means for Investors
At A&S Capital, we view this trend as more than just a market quirk. It’s a strategic opening. Investors who understand how to evaluate vintage multifamily assets can benefit from:
- Value-add potential — Older buildings often present upgrade opportunities on unit interiors, exteriors, and amenities, allowing for forced appreciation.
- Cash-flow upside — With lower acquisition cost basis and competitive financing, the stabilized rental yield can be compelling.
- Exit flexibility — Once repositioned or stabilized, these assets may refinance into long-term rental financings or be held for enduring cash flow.
How A&S Capital Can Help
Our financing solutions are well-positioned to support investors in this vintage multifamily space. Whether you’re acquiring an older property or executing a value-add strategy, we can offer:
- Bridge or acquisition-financing for older multifamily assets.
- Construction or renovation funding to execute the repositioning plan.
- Long-term rental financing (once stabilized) to maximize hold strategy.
- Speed, flexibility, and investor-centered underwriting to align with your timeline.
Key Questions for Your Next Deal
When assessing an older multifamily asset, ask:
- What is the building’s age, condition, and major systems status (roof, HVAC, plumbing, etc.)?
- What renovation scope is required to reposition the asset (units, amenities, curb appeal)?
- How will financing structure (bridge → hold) align with acquisition and exit strategy?
- What is the stabilized rental income and cash-flow forecast relative to acquisition cost and financing terms?
The movement toward older multifamily assets signals a meaningful shift in investor mindset: lower cost of entry, reliable cash flow, and less crowded competition. At A&S Capital, we believe this trend offers opportunity, and we’re here to provide the financing infrastructure to help you capture it.
